Extra Credit Assignment
Expand from what you have already completed for Assignment #1. Please complete the following tasks:
1. Obtain a few other ratios for the company, its competitor, and the industry from Reuters.com (www.reuters.com/finance/stocks).
Growth Rates
- EPS (TTM) vs. 1 yr. ago
- EPS growth for past 5 years
Valuation:
- P/E high for past 5 years
- P/E low for past 5 years
- Beta
2. Your report should have the following sections:
a. Company introduction, financial overview, a brief introduction about the industry and its key competitor(~1 page)
b. Explain how profitability & efficiency, financial strength and valuation compare to the industry and key competitor. (~2 pages)
c. Based on the ratio analysis supplemented with your research about the company, identify and discuss company's key strength and weakness. (~1 page)
Please submit a full 4-page report about your analysis and recommendations (not including references and tables, which should be separate in appendix). Use the formatting as of this document (1" margin, Times New Roman font size 12, and double space).
Grading based on:
- Data collection and analysis
- Carefully explain ratios and implications
- Identify strength/weakness
- Writing and organization
Notes:
(1) It's ok if you cannot find information for a couple ratios, but you do need ratios from each category for your analysis
(2) For strength/weakness discussions, please base that on what you find from the ratios, instead of just google and copy what others say about it (you can use that as reference, but please link to the ratio analysis). Think of the analysis and report as you are presenting to your client, and give them reasons why you recommend or not recommend investing in the company.
(3) If you spot something unusual (such as significant increase in debt, or big drop in sales), dig a little further on what has happened to the company, and include that in the discussions.